That price is incredibly high considering the body damage. I'd keep looking!
Consider reading the FAQ at the top of the forum. It contains a lot of advice for new buyers and these are things you should know about before you go out looking at trucks.
Also, I don't think I'd replace a running engine, unless you plan to do all the work yourself. Even then, it will be very expensive to undertake. 80s are powerful, period. However, the 1FZ (93-97) is a good step up in power from engine found in the earlier models. If you are looking in the $5000 price range, I bet you can find a good 80 with the newer engine. I believe airbags came around in 95 if that is important to you too.